Satin Creditcare in red

Satin Creditcare is among the top five losers on the BSE since the opening bell today morning. The stock went down 11% to hit an intraday low at Rs.75 while its 20% LC  for the day stands at Rs.66.95. Its 52-week low is at Rs.50.85.

Two months of lockdown led to disbursement challenges and collections did get impacted. This showed in the earnings, wherein the company reported a net loss of Rs.81 crore v/s profit of Rs.13 crore (YoY).

Cumulative collection efficiency for Q1 FY22 stood at 82%, excluding Assam at 84%. There is no intent issue since 95% clients have paid at least one instalment in Jun’21 – difficulty in paying due to adverse external environment. Its non-paying clients at 5% in Jun’21, this number was 11% in Sep’20 which is a promising sign.

The company has made a cumulative on-book provision of Rs. 434 crore, as on 30th Jun’21, mainly due to second wave of COVID-19. It maintained adequate provisions and write offs for bad loans, and expect write backs in the upcoming quarters. Its On-book GNPA stood at 9.7% while NNPA stood at 1.2% on standalone basis.

The company restructured 18,735 loans related to individuals and small businesses amounting to Rs. 43.4 crore in accordance with the RBI's guideline - Resolution Framework - 2.0, which is 0.7% of Standalone AUM.

The company has maintained a cautious stance in new disbursement as its main focus is to maintain asset quality and the company says that as things improve, it expects disbursement to pick up in the coming quarters.